Editor’s Note: This article was originally published in February 2024 and updated in August 2026 to reflect current cloud reporting technology and best practices, with expanded guidance on evaluating cloud-based reporting tools.
Cloud reporting is the process of creating, accessing, analyzing, and sharing business reports using cloud-based software rather than reporting applications and infrastructure hosted on local servers. Cloud reporting tools typically connect to business data sources such as ERP, CRM, and other financial or operational systems and allow users to build and access reports through a web browser.
What is Cloud Reporting?
There was a time, not long ago, when we all ran our own on-premise servers to manage IT infrastructure and business applications. In those days, you were responsible for all of the costs, labor, and accountability of running and maintaining your company’s software, hardware, networks, data, and security. Because of this, many businesses fell into the sunk cost fallacy, clinging to outdated systems just because they’d already invested so much in them.
Today, cloud computing has inevitably changed the way this process works. Cloud applications no longer require the heavy investment in infrastructure we’re familiar with. Powered by the world’s largest cloud service providers, most of the hard work is done.
From the extreme cost savings to the advanced speed and agility, companies have increasing realized the value of migrating to cloud-based software. From ERP to reporting, every modern business needs to be able to easily manage, store, and access and scale their growing piles of data more efficiently.
This blog post will focus on cloud reporting, including the benefits it can provide your business operations and when you should choose it over an on-premise alternative.
Cloud Reporting Defined
Your ERP system is designed to collect data, not analyze it. That’s why most companies invest in a third-party reporting and analytics solution to simplify report creation, run advanced queries, and track performance metrics. Like other business applications, you can purchase reporting and BI software built in the cloud for the cloud. Although the benefits are similar to most cloud solutions, it’s helpful to understand exactly what this technology means to you as a business owner.
Cloud reporting is a modern deployment model for financial and operational reporting, where your report authoring tools and data sources are hosted in the cloud and accessed via a web browser. While you typically have control over your permissions and data model, a cloud service provider like Microsoft Azure is responsible for managing the network and servers – keeping all software and security updated at all times. Cloud reporting is typically subscription-based, with pricing models that may scale based on users, capacity, features, or usage.
The terms around cloud reporting have even more distinctions, most prominently: cloud-based vs. cloud-enabled. Here is a quick overview:
Cloud-Based Applications:
Cloud-based or cloud-native applications (referred to as “cloud” in this article) are made for the cloud. They are built in the cloud and deployed in the cloud, therefore fully leveraging the advantages of the cloud infrastructure and delivery model.
- Designed to host multi-tenant instances
- Highly scalable
- Changes can be made without causing business disruptions
- No hardware or software investments
- Quick and easy to implement
Cloud-Enabled Applications:
Cloud-enabled software is technically what on-premise legacy systems use to become more “cloud friendly.” These applications were initially made for a static locally-hosted environment, with little to no consideration for cloud tools. Although on-premise applications can be rewritten to access some cloud resources, they cannot access shared services and require on-site hardware maintenance. Because these applications were not built to fit the parameters of the cloud, they cannot offer the same functionality and performance that true cloud solutions can.
- Made on in-house servers
- Need to customize for a specific installation environment
- Require manual upgrades causing disruption and application downtime
- Costly hardware upgrades and maintenance
These distinctions are important because they will help you decide what reporting solution best fits your current business model.
For example, if you’ve invested in a serverless cloud ERP solution, like Microsoft Dynamics 365 Business Central, a cloud-enabled application won’t provide you with the full cloud scalability and accessibility you need – plus, you’ll have to invest in a server to house your data. In this scenario, you would choose a cloud-based reporting solution that is more aligned with infrastructure and seamlessly integrates with your Microsoft Cloud model.
Cloud-Based vs. Cloud-Enabled vs. On-Premise Reporting:
While the terms are sometimes used interchangeably, cloud-based, cloud-enabled, and on-premise reporting solutions differ significantly in how they are built, maintained, and accessed.
| Feature | Cloud-Based Reporting | Cloud-Enabled Reporting | On-Premise Reporting |
|---|---|---|---|
| Architecture | Built specifically for the cloud | Legacy software adapted for cloud access | Built to run in a locally hosted environment |
| Infrastructure | Cloud-hosted with no local reporting server required | May still require dedicated infrastructure | Requires locally managed servers and infrastructure |
| Updates & Maintenance | Typically automatic and vendor-managed | May require manual updates and maintenance | Typically managed internally or by an IT provider |
| Accessibility | Accessible through a web browser from virtually anywhere | Remote access varies by application and deployment | Often dependent on a local network, VPN, or remote desktop |
| Scalability | Designed to scale resources and users as needed | Scalability may be limited by the underlying architecture | Scaling may require additional hardware or infrastructure |
| Upfront IT Requirements | Minimal local infrastructure requirements | Varies depending on how the application is hosted | Requires hardware, installation, configuration, and ongoing management |
Compare Reporting Options in Business Central
Read this blog to navigate the scope of available report building tools in Business Central and how to overcome some of the obstacles.
The Debate Between On-Premise vs. Cloud Reporting
So far, we’ve covered some basics of what makes cloud reporting different from on-premise reporting software. But the reality is that there are many more third-party on-premise reporting solutions available for Business Central on the market today – and you will receive recommendations for them when you start looking for new reporting and BI software. Unfortunately, these systems are struggling to meet today’s standards for easy and accurate data management and reporting.
In the Microsoft Dynamics ecosystem, we’ve talked to thousands of customers who are all experiencing the same problems with stagnant third-party on-premise software. Here are some of the issues they face:
- User interface is dated and difficult to use
- Slow report performance with no ability to run multiple reports at the same time without Excel locking up
- Heavy reliance on IT and technical resources to build and modify reports
- Data sources are not properly configured, and accuracy is unreliable
- Security risks and complexity of on-premise system upkeep
- Limited access to data and reports outside the office
Due to the high costs and technical complexities, everyday users can’t build their own reports, access the data they need, and make decisions at the speed of business. And it’s a direct result of the technology they use. That’s what makes cloud reporting such a revelation in the cloud ERP and BI space. Its speed, unified platform, user-friendly interface, and instant scalability resolve many, if not all, of the current obstacles of on-premise reporting.
10 Fundamental Advantages of Cloud Reporting
We’re living in the age of data, where reporting and analytics have never been more critical to your success as a business owner. With the right tools and strategy, you can quickly refine how people perform their jobs and make decisions.
Unlike its on-premise predecessors, true cloud reporting software equips businesses with the usability, accessibility, and flexibility to operate in a fast-paced environment. Here are 10 ways that you can clearly see how cloud reporting provides a competitive advantage:
- Reduced Costs
Not having to host large servers in-house allows you to keep your maintenance and energy costs low and free up time for your IT staff and system administrators. Cloud providers offer pay-as-you-go pricing, which means you only pay for the services you use.
- Enhanced Productivity
Modern cloud reporting solutions are designed to provide convenient access, strong performance, and an intuitive experience for business users. By providing an intuitive experience, users can more easily create, customize, and share reports without relying as heavily on technical expertise.
- Seamless Integration
Cloud reporting platforms can connect data from multiple applications and systems, making it easier to bring business data together for reporting and analysis. By leveraging one unified platform, you can minimize administration with a single sign-on and instantly scale your software in a few clicks.
- State of the Art Security
Major cloud platforms such as Microsoft Azure provide multiple layers of security, including infrastructure and network protections, identity and access controls, encryption, monitoring, and ongoing security updates. Depending on the provider and service, cloud vendors may also offer built-in backup and disaster recovery capabilities along with service-level agreements for availability.
- Simplified Collaboration
Cloud reporting can make it easier for teams to access, share, and collaborate around the same reports and data, regardless of where users are working. It also provides enhanced collaboration tools like Microsoft 365 applications.
- Increased Data Quality
A well-designed cloud reporting environment can improve data quality by creating a consistent reporting layer across business data sources. Reporting databases, data marts, or data warehouses can help organize, standardize, and prepare data for analysis. However, reporting accuracy still depends on the quality, governance, and configuration of the underlying data.
- Faster Insights
Cloud reporting and analytics solutions can provide the processing power needed to access, aggregate, and analyze large data sets quickly. This helps users find answers faster, identify business trends, and pinpoint areas that require attention.
- Fast Implementation
Because cloud reporting typically requires less locally managed infrastructure, implementation can be simpler than deploying traditional on-premise reporting software, depending on the complexity of the organization’s data and integrations.
- Effortless Availability
Without having to be wired into any on-site hardware or desktop, your staff can access data and work collaboratively on reports from anywhere on any device with an internet connection.
- Instant Scalability
Strategically scale your cloud resources to meet fluctuating demands. This increased business agility allows you to increase (or decrease) capacity, performance, storage, memory, and functionality as required.
What Should You Look for in a Cloud-Based Reporting Tool?
Not all cloud-based reporting tools offer the same capabilities. The right solution should make it easier to access, analyze, and share your data without adding unnecessary complexity or relying heavily on technical resources. When evaluating cloud reporting software, consider these key factors:
1. Integration with Your Data Sources
A reporting tool is only as useful as the data it can access. Look for a solution that integrates directly with your core business systems, including ERP, CRM, financial applications, and other data sources. Direct integrations can reduce manual data preparation and help keep reporting consistent, accurate, and current.
2. Self-Service Reporting
Business users shouldn’t have to rely on IT or developers every time they need to create or modify a report. Modern cloud reporting tools should provide intuitive report-building capabilities that allow users to explore data, customize reports, and answer everyday business questions independently.
3. Reporting Performance
Cloud reporting should make accessing data faster, not create another bottleneck. Consider how quickly a platform can retrieve and process data, refresh reports, and handle multiple users or reports simultaneously, particularly as your data volume grows.
4. Security and Data Governance
Look for features such as role-based access, row-level security, single sign-on, and clearly defined user permissions. A strong cloud reporting platform should make it possible to give users access to the data they need while protecting sensitive financial and operational information.
5. Reporting and Visualization Options
Different users need different ways to consume data. Consider whether the tool supports the reporting formats your organization relies on, from detailed financial and operational reports to dashboards, visualizations, Excel-based reporting, and Power BI.
6. Scalability and Flexibility
Your reporting requirements will change as your business grows. A cloud-based reporting platform should be able to accommodate additional users, larger data volumes, new data sources, and evolving reporting requirements without requiring significant new infrastructure.
7. Cloud-Native Architecture
Finally, understand whether the solution is truly cloud-native or simply legacy reporting software that has been adapted for cloud access. Cloud-native reporting tools are designed to take advantage of cloud scalability, automatic updates, accessibility, and modern security from the start.
For organizations using Microsoft Dynamics 365 Business Central, these considerations become even more important because the reporting solution should complement Business Central’s cloud architecture rather than reintroduce the infrastructure and limitations you moved away from.
Experience Cloud Reporting Built for Business Central
At Cosmos, we want to help people eliminate the burden of on-premise system upkeep and break free of its reporting limits. As the first (and only) cloud reporting and analytics solution designed specifically for Microsoft Dynamics 365 Business Central, Cosmos is built for users. Powered by Microsoft Azure cloud, Cosmos reports are easy to create, run at lightning speed, refresh simultaneously, and require no technical expertise to design and share custom reports and Power BI dashboards quickly and easily.
If you’re reading this blog post, then you’re probably a current or prospective Business Central customer trying to find a solution for self-service reporting – or reporting on your terms. Watch this video and in 2 minutes you’ll learn exactly what makes Cosmos different and why we’re confident that it’s the right fit for you.
One of the biggest highlights of Cosmos is the sheer speed of generating regular financial and operational reports. On average, our cloud reporting solution is 48 times faster when running reports compared to other Excel-based on-premise solutions on the market today. So before you settle for a cloud-enabled or on-premise reporting solution for Business Central, witness the true speed and power of cloud reporting by booking a quick 30-minute demo below!
Cloud Reporting FAQs
What is a cloud-based reporting tool?
A cloud-based reporting tool is software that allows users to create, access, analyze, and share reports using applications and data hosted in the cloud. Unlike traditional on-premise reporting software, cloud reporting tools are typically accessed through a web browser and don’t require users to maintain local reporting servers or infrastructure.
What is the difference between cloud reporting and on-premise reporting?
The primary difference is how the reporting software and infrastructure are deployed and managed. Cloud reporting is hosted in cloud infrastructure and typically accessed over the internet, while on-premise reporting relies on software and infrastructure maintained within an organization’s own environment. Cloud solutions generally offer easier remote access, automatic updates, and greater scalability with fewer local infrastructure requirements.
Is Power BI a cloud reporting tool?
Microsoft Power BI is a cloud-based business intelligence and analytics platform, although it also includes desktop tools and supports connections to both cloud and on-premise data sources. Power BI is commonly used for interactive dashboards and data visualization, while other cloud reporting tools may focus more heavily on financial, operational, or formatted report creation.
What data sources can cloud reporting tools connect to?
Cloud reporting tools can connect to a wide range of business data sources, including ERP and CRM systems, databases, cloud applications, data warehouses, and other business software. The specific integrations available vary by reporting platform, so organizations should make sure a tool supports their existing systems and data architecture before selecting one.
Are cloud reporting tools secure?
Cloud reporting tools can provide strong security when properly configured. Depending on the platform, security features may include encryption, single sign-on, multi-factor authentication, role-based permissions, row-level security, monitoring, and data backups. Organizations should evaluate both the cloud provider’s security practices and the reporting application’s own security and data governance capabilities.
What is the difference between cloud reporting and business intelligence?
Cloud reporting and business intelligence (BI) overlap, but they aren’t exactly the same. Reporting generally focuses on organizing and presenting business data through structured reports, financial statements, operational reports, or recurring outputs. Business intelligence typically goes further into interactive analysis, visualization, dashboards, trends, and data exploration. Many modern cloud reporting platforms offer both reporting and BI capabilities.
